What is a rug pull? This article explains what it is and how to stay safe. The Pepe Unchained layer-2 is certified to be secure
In crypto, if you aren’t careful, things can go down south real quick.
It even gets more risky when smart contracts are involved. With scams like rug pulls and other illegalities, it all pays when one is not reckless.
And, after all, since crypto empowers one to take charge, it only makes sense not to be all rushy and greedy (a human emotion no one can be blamed).
In crypto, you can lose money from capital losses, but sometimes you can misplace your private keys.
However, the most painful way to part with your coins is through a rug pull, a fancy term for outright theft.
What Is A Rug Pull?
So, what exactly is a rug pull? To simplify, a rug pull is a scam common in crypto.
It happens when a project releases a token to the masses, generates hype around it, and then suddenly sells its holding, mostly from its pool.
Because of the sudden wholesale dumping, the token price plunges.
What remains after this is you, the investor, holding mud while the project developer runs away with all the hard-earned capital you had channeled to the pool.
How To Identify A Crypto Rug Pull
But the good thing is that there are tell-tale signs and red flags to pick out.
Check them below:
- You can always smell a rug pull from a mile away if the developer releases a token but maintains a majority of the total token supply. In this way, it becomes easier for them to manipulate prices and even cash out at their convenience.
- Another way is for the scammer to issue tokens but leave out avenues for taking back control of all tokens through a back door. To do this, they use a fraudulent contract, allowing them to manipulate token supply and steal funds.
- If they can’t do the above, rug pullers can choose to provide unlocked liquidity to a DEX. This allows them to quickly withdraw funds when prices rise. The resulting oversupply forces token prices down quickly.
Do This to Stay Safe From Rug Pulls
With all this, how do you stay safe?
- Always conduct due diligence. When the deal looks so good, the wise men said, then don’t fail to research. Before sinking your hard-earned money, there is no problem asking the hard questions. Look at the team and probe their tech.
- Since rug pullers can attempt to manipulate the token’s tokenomics, always look at the project’s tokenomics. Ensure all tokens are distributed equally and that not a big portion is held by a small number of wallets.
- Verifying the project’s smart contracts will also help. Admittedly, you may not be tech-savvy; most of us aren’t anyway. So, what do you do? Well, you can use AI and other tools to ensure that the code is free from vulnerabilities.
- This may require some research. But, always avoid projects where the majority of all tokens have hit the secondary market. Why? It is easier for these projects to be rug-pulled.
Pepe Unchained Is Secure: Here’s Why
While rug pulls are undoubtedly a concern across crypto, not all projects are scams.
Take, for example, Pepe Unchained.
Pepe Unchained has raised over $11.5 million from the masses in the ongoing presale.
At press time, each PEPU, or the native token, is available for just $0.0095362.
This shows that more investors have researched the project and are convinced that not only will it explode in the coming weeks, but all its codes are safe.
In their community-centric approach, Pepe Unchained has been audited by top blockchain security firms, including CoinSult and SolidProof. All of them report that its code is safe and project developers stand no chance of rug-pulling investors.
What’s more?
The Pepe Unchained tokenomics is clear. There are portions for presale investors, staking rewards, and marketing. The team doesn’t control the majority of PEPU.
Pepe Unchained is building a layer-2 for Ethereum dedicated to meme coins.
The platform will offer low fees and high scalability while being interoperable with Pepe Chain.
Those who buy PEPU can also stake, receiving a 167% APY.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
